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DNR
Posted: Wed Jan 12, 2011 10:32 am
by SEIFER
Barclays upgrade to 23 today
Re: DNR
Posted: Wed Jan 12, 2011 12:46 pm
by SEIFER
Re: DNR
Posted: Wed Jan 12, 2011 3:33 pm
by dan_s
DNR is much different than most E&P companies. It has VERY long-lived proven reserves. It is also HEAVILY weighted to oil.
It also has a large block of good acreage in the Bakken which the market has yet to fully price in.
At today's price, DNR is very low risk investment with a lot of upside.
Re: DNR
Posted: Fri Jan 21, 2011 2:52 pm
by dan_s
Sure looks like a Strong Buy at today's price. My Fair Value estimate is $22.50/share with a lot more upside if oil prices bounce of support at $88/bbl.
I'm going to wait until I see 4th quarter results for the Sweet 16 before I increase the commodity prices used in my forecast models.
Re: DNR
Posted: Fri Jan 21, 2011 6:31 pm
by mdwitte
Dan: Isn't DNR spending billion$ expanding their CO2 pipelines? How are they financing this...from cash flow or debt? At any rate, once these big CAPEX expenses are behind them (if it ever happens!) DNR should be a money machine! They are a true niche player...I plan to hold DNR "forever"!
Re: DNR
Posted: Fri Jan 21, 2011 7:19 pm
by dan_s
From my Net Income and Cash Flow Forecast model, which you can find under the Sweet 16 tab.
$1.14 Billion = 2011 Cash Flow (based on $78/bbl realized oil price)
$1.00 Billion = 2011 Capital Expenditures Budget.